60
TOBACCO OUTLET BUSINESS
SEPTEMBER/OCTOBER 2012
efforts over the past year. The first
and most obvious move was to take
a holistic view of maximizing the
potential of the combined entity’s
product portfolio. Lane had a large
share in the pipe tobacco market—
largely through its top-selling Captain
Black brand—and STG had a wide
range of brands—including the well-
known, STG-produced Stokkebye pipe
tobacco—so bringing both companies’
brands under one sales and distribution
arm made sense.
“
Lane products like Bugler and
Captain Black have been around for
some time and are very strong,” says
Michols. “What STG has offered is the
support mechanism out of Copenhagen
that will provide an opportunity to do
more with those brands. If we need
products produced elsewhere for more
efficiency or consumer research with
relevance to the U.S., we can tap that at
STG. The heritage of Lane combined
with the global opportunity of STG is
a huge and exciting combination that
we feel really good about.”
STG Lane is also seeking to round
out its portfolio in the little cigar
category. In March, the company
introduced Talon, a new high-quality,
value-priced filtered cigar. Several
additional launches are currently in the
works, including a mini tip cigarillo
extension to the Captain Black brand.
“
This is a very convenient size that
you’ll be able to smoke during a shorter
smoking break,” explains Kjærgaard-
Jensen. “With all the restrictions on
smoking today, it can be hard to find
the time to smoke, so this will offer
smokers a product they can enjoy when
time is an issue.”
“
We are looking to expand our
cigar portfolio to ensure we can satisfy
consumer needs and desires across all
the different types of cigar segments,”
adds Michols, who notes that the
company plans several additional
product launches in the fall.
The company has also focused on
creating a sales and distribution system
for both Lane and STG brands that
will strengthen its relationships with
retailers, wholesalers and distributors.
“
When the transaction with RJR was
finalized, the sales side and other back
office functions stayed behind—so
we’ve been creating a sales organization
from scratch,” explains Michols, who
describes a hybrid approach that
couples selling directly and working
with brokers. “We are working very
hard to ensure that we have good
representation and good working
relationships with retailers, wholesalers
and distributors in all the classes of trade
where you find OTP, from c-stores and
food or club stores on down to tobacco
outlets and tobacconist shops.
“
We talk every single day about our
desire to be a good partner for our
retailer and wholesaler customers,”
he adds. “All the things we talk about
and that we are working on center
around that goal. If we can do that and
be successful both for them and with
them, then we will be successful.”
TOB
